Fix Price, “Russia’s Poundland” to IPO in London at top-of-the-range valuation of $8 billion

Russia’s answer to Poundland, Fix Price, today priced its London stock market float at $8.3 billion - right at the top of its previously-announced price range.

Strong demand for the shares saw it set its stock at $9.75 per global depositary receipt - a type of stock similar to shares issued by companies trading shares on multiple exchanges.

It is the largest Russian float since western sanctions started being imposed on the country in 2014.

The float comes as Fix Price hopes to expand on the back of surging demand for its cheap goods by Russians hit by the economic consequences of Covid.

Fix Price will be floated on both the London and Moscow exchanges.

Major funds to back the float including the Qatar Investment Authority, BlackRock, GIC and APG have agreed to invest £475 million between them in the IPO and conditional dealings started today.

Chief executive Dmitry Kirsanov said the float was a “landmark” for the business and was Russia’s biggest float of a retailer.

Analysts have noted the strong demand from US investors, something of a surprise given the chilly relations between Washington and Moscow.

It was also noticeable that four Wall Street banks - Bank of America, JPMorgan, Morgan Stanley and Citigroup were hired as global coordinators and bookrunners on the float alongside Russia’s VTB Capital, whose parent VTB has been on the western sanctions list due to the Ukraine upheaval.

The European Union’s highest court upheld sanctions on VTB last year, dismissing its appeal against them.

Fix Price has more than 4200 shops, mostly in Russia but also in neighbouring countries such as Belarus and Kazakhstan.

It will be the largest retail IPO in London since 2006’s launch of Lotte Shopping, which raised $3.7 billion and the largest international IPO since Allied Irish Banks floated in 2017.